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How to Lower Your Term Life Insurance Premiums Without Compromising on Coverage?

By Vikas Chandra Das
21 July 2022, 11:46 AM
lower term life insurance premiums

Getting a high life cover at the lowest possible rate is something that everyone wishes to do. However, at times, the term life coffers, which are usually very cheap, come across as more expensive than normal. Why does this happen and can you do anything to reduce the cost? The good news is, you certainly can! Read on to know more.

Ways to Lower the Term Life Premium

Listed below are a few ways in which you can lower your term life insurance premium without having to compromise on the coverage amount:

1. Buy It Young

Unlike health insurance plans, term insurance premiums do not rise after the plan has been issued. So, if you buy a term insurance plan early in life, you get a lower premium for the rest of the entire policy tenure, which doesn’t increase. It is the easiest way to lower your life insurance premium.

2. Compare 

You should always compare the term life insurance quotes to find the best plan at the best rate. Unless you compare, you will not be able to locate all the policies on offer. When you compare, you also get to find the plan that offers the highest cover at the lowest price. It is very easy to compare term insurance. You can do so online in just a few minutes. It doesn’t cost any money to use the comparing tools, so never buy a term life insurance policy without running a comparison first.

3. Quit Smoking 

If you are a smoker, your term life insurance premium will be much higher than what it generally should be for a person of your age. If you genuinely want a good term life cover at a low price, quit smoking and try applying for the plan after a few months or a year. You will find that the cost of the plan has come down considerably. The additional advantage of this will be that you will be fitter and will be able to live a healthier life as well!

4. Get Fitter

Along with quitting smoking, you can try other forms of fitness routines too. If you are overweight, shed some pounds. If you have hypertension, exercise and get your BP levels under control. If you have high blood sugar, eat a balanced diet and reduce the levels. Once you curb your lifestyle disorders, you will find your term insurance premium go down. In fact, some term insurance plans provide wellness benefits as well.

5. Enter Your Details Properly  

At times, certain lifestyle conditions such as place of residence and occupation increase your term insurance premium. For instance, if you live in a metro city and work as a firefighter, your premium will be much higher than a banker who lives in a tier 2 city. If you have recently moved and shifted to a new city or you have changed your occupation, make sure you enter the correct details in the application form. If you enter incorrect details, the premium of your plan will unnecessarily and incorrectly be higher.

6. Assess the Riders

Many term insurance plans have riders. If you have a few riders attached to your plan, evaluate them from time to time. Every rider you have pushes up the price of your policy. Therefore, you need to analyse our riders and constantly weigh them against your own requirements and see which rider you need and which rider you do not need. Drop the ones you do not need and see your term life insurance premium drop instantly. However, riders are an efficient and cost-effective way to enhance your term life coverage.

7. Look for Online Plans 

Online term insurance plans are a lot cheaper than offline plans. This is because you save on the brokerage amount. Also, the insurance company saves on the administrative charges and processing charges and they pass the discount on to you, which further reduces the cost of the term plan. This is why it is much more economical to buy term insurance online. You can also compare the plans easily and make a purchase instantly, so definitely use the digital platform to find the best and the cheapest term life insurance cover. If you take care of these factors, you will surely see a dip in the price of your term insurance premium.

In Conclusion

Term insurance is a wonderful form of life insurance in which you can get a high sum assured at a very low cost. If you want to further reduce the cost, follow the tips mentioned above and you will definitely see a noticeable change in the premium amount. Buy the plan at a low cost and stay covered in an economical and also a wholesome manner for many years to come.

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